Tags: 2016 Elections | Hillary Clinton | Barack Obama

Govt Doesn't Create Jobs — Private Sector Does

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Tuesday, 05 May 2015 01:44 PM Current | Bio | Archive

Democrats and their fellow travelers in the mainstream media have been trumpeting the success of the Obama recovery. To make Obama’s feeble, wheezing recovery look better they compare his paltry numbers with a Republican economic policy that never existed.

As Hillary Clinton says, “You know that old theory, trickle-down economics. That has been tried, that has failed. It has failed rather spectacularly.” Which Bloomberg Politics reporter Jonathan Allen calls, “President Ronald Reagan's pet economic concept,” which unfortunately for Allen is a lie.

“Trickle–down” economics is a term invented by one of FDR’s leftist advisers during the 1930s. It was never a Republican policy and certainly not Ronald Reagan’s “pet economic concept.” Dad’s pet was named Rex, a Cavalier King Charles Spaniel he got for Nancy as a gift.

My father’s trademark economic policy was growing the economy by removing the dead hand of government. The easiest method of doing this was through lowering tax rates. So rather than compare trickle–down socialism with an imaginary economic policy, lets compare the Reagan recovery with the Obama’s quasi, do–not–resuscitate economy.

The Gateway Pundit has done a comparison of Gross Domestic Product and job creation for the Reagan administration and the Obama administration in the wake of their respective economic downturns.

Overall during the eight years of the Reagan presidency GDP grew a remarkable 32 percent, with an average yearly growth of 3.5 percent, jumping to 4.9 percent after the end of the recession.

Let’s compare that record with Obama’s you–didn’t–build–that, big government, stimulus economy. Overall during his administration Obama’s GDP has grown a pitiful 9.6 percent. In the first quarter of 2015 growth, if you want to call it that, was less than 1 percent, 0.2 percent to be exact.

But you may protest that my father had eight years and so far the U.S. has only endured six years of Obama. The Gateway Pundit covers that, too: “By the end of the second year of their terms as president, economic growth under Reagan averaged 7.1 percent, under Obama an anemic 2.8 percent.”

Job growth is even worse. Under Obama’s management net job growth has actually declined. The graph comparing the job growth of my father with that of Obama looks like a “V” placed on its side, with the Reagan line soaring above the baseline and the Obama line plunging below.

The Pundit sums it up thusly, “more than five years into the tepid [Obama] recovery, labor-force participation remains at its lowest level since 1978 during the Carter years.”

Hillary and Obama are wrong. Government doesn’t create jobs, its heavy hand prevents job growth and stifles the economy. The private sector is where economic growth begins and government is where it ends.

Michael Reagan is the son of President Ronald Reagan. He is president of The Reagan Legacy Foundation and chairman of the League of American Voters. Mike is an in-demand speaker with Premiere. Read more reports from Michael Reagan — Go Here Now.
 
 


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Hillary and Obama are wrong. Government doesn’t create jobs, its heavy hand prevents job growth and stifles the economy. The private sector is where economic growth begins and government is where it ends.
2016 Elections, Hillary Clinton, Barack Obama
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2015-44-05
Tuesday, 05 May 2015 01:44 PM
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